Bed Bath & Beyond Inc. launched a $675 million, three-year accelerated share repurchase program Wednesday, including an accelerated share repurchase agreement to repurchase $225 million of the Union-based retailer’s common stock.
“We’re focused on maximizing value for our shareholders and the ASR reflects our commitment to returning capital as part of a balanced approach to drive shareholder value creation and sustainable growth for the business,” said President and Chief Executive Officer Mark Tritton in a prepared statement.
“Our decision to resume our share buyback program coupled with our actions to date to pay down debt, sell non-core assets and increase liquidity, reflect the strength of our business and financial position, capacity for strategic investments, disciplined approach to capital allocation and our confidence in our growth plan,” Tritton said.
Under the terms of the ASR, the purchase price per share will be determined based on the daily volume-weighted average stock price over the term of the ASR, less an agreed discount and subject to adjustments, according to the announcement Wednesday.
The final number of shares repurchased under the ASR will be based on this purchase price.
Final settlement of the transaction is expected to occur by the end of Bed Bath’s fiscal fourth quarter on Feb. 27, 2021.
The company is funding the share repurchases under the ASR with existing cash resources generated from the monetization of some non-core assets.